Commodity Trading Tips for Mentha Oil by KediaCommodity

Mentha-OilMenthaoil November contract dropped Rs 7.5 and settled at Rs 1181.9 tracking weakness in spot demand. There are reports of traders waiting for lower levels to initiate fresh demand in the mandis as winter season domestic and export demand are set to pick up. In Rampur, mentha oil (68 GLC) quoted at Rs 1,358-1,360 per kg, in Chandausi Rs 1,380 per kg, in Sambhal at Rs 1,380 a kg, in Barabanki at Rs 1,320 a kg. On 5th November, total stock of mentha oil at MCX-monitored warehouses at Chandausi was 89,886 kg of which 86, 287 kg was physical stock and demat stock was 3,598 kg. At Barabanki, the total stock was 13, 73, 459 kg of which, physical stock accounted for 12, 10, 717 and demat stock was 1, 62, 742 kg. Better production prospects have been keeping overall sentiments weak. Production this year likely to exceed 50000 tonnes as per sources vs 38000 tonnes last year. Higher sowing activities due to the high rates obtained by farmers last year resulted in higher production this year. In Uttar Pradesh, the largest producer of Mentha Oil in India, the area has been forecast to rise to 2.10 lakh ha vs 1.75 lakh ha. The contract made intraday low of Rs 1172.7 a kg and high of Rs 1188.9 a kg with the volume of 2750 and total open interest for the same contact was at 3865.Now support for the menthol is seen at 1173.4 and below could see a test of 1165. Resistance is now likely to be seen at 1189.6, a move above could see prices testing 1197.4.

Trading Ideas:

Mentha oil trading range for the day is 1165-1197.4.

Menthaoil spot is at 1361/-.Spot market is down by Rs.9/-.

Menthaoil ended lower tracking weakness in spot demand.

Better production prospects have been keeping overall sentiments weak.

Total stock of mentha oil at MCX-monitored warehouses at Chandausi was 89,886 kg of